AT LEAST 5 INDIGENOUSLY DEVELOPED SMRS WILL BE OPERATIONALIZED BY 2033

Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Budget 2025-2026 in the Parliament today said that a Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of   Rs. 20,000 crore will be set up. At least 5 indigenously developed SMRs will be operationalized by 2033, she informed.

Smt. Sitharaman highlighted that development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts. For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up.

The Budget also proposes that states will be incentivized for electricity distribution reforms and augmentation of intra-state transmission capacity. This will improve financial health and capacity of electricity companies. The Minister informed that additional borrowing of 0.5 per cent of GSDP will be allowed to states, contingent on these reforms.

Nuclear Energy Mission to develop small modular reactors with private sector partnerships and legislative amendments for energy transition. A central Nuclear Energy Mission will be established to fund research and development of small modular reactors (SMRs) with a dedicated outlay, mandating indigenous SMR development and operationalisation targets. The Union will pursue amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to enable private sector participation. The Budget also conditions state incentives and additional borrowing on electricity distribution reforms and intra state transmission augmentation to improve utilities' financial health and grid capacity.